GigaCloud Technology Inc Increases Share Repurchase Program by $16 Million
Rhea-AI Summary
GigaCloud Technology (Nasdaq: GCT) has expanded its share repurchase program with an additional $16 million authorization, increasing the total buyback capacity to $62 million from the previous $46 million. The program will run through August 28, 2025.
The company may execute these repurchases through various means, including open market transactions, privately negotiated deals, and block trades, in compliance with Rules 10b5-1 and 10b-18 of the Securities Exchange Act. The timing and volume of repurchases will be influenced by factors such as share price, trading volume, market conditions, working capital requirements, and general business conditions.
The buyback program will be funded from GigaCloud's existing cash balance and remains subject to periodic review by the board, who may modify, suspend, or terminate it at any time.
Positive
- Significant increase in buyback program by $16M to $62M total authorization
- Shows management's confidence in company's value and commitment to shareholder returns
- Company has sufficient cash balance to fund the program
Negative
- Buyback program reduces cash available for business operations and growth initiatives
- Program may be modified, suspended, or terminated at any time
News Market Reaction 1 Alert
On the day this news was published, GCT declined 6.52%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
EL MONTE, Calif., April 02, 2025 (GLOBE NEWSWIRE) -- GigaCloud Technology Inc (Nasdaq: GCT) (“GigaCloud” or the “Company”), a pioneer of global end-to-end B2B ecommerce technology solutions for large parcel merchandise, today announced that on March 28, 2025, its Board of Directors approved an additional
Under the share repurchase program, the Company may purchase its ordinary shares through various means, including open market transactions, privately negotiated transactions, block trades, any combination thereof or other legally permissible means. The Company may effect repurchase transactions in compliance with Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The number of shares repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, share price and trading volume, and general market conditions, along with the Company’s working capital requirements, general business conditions and other factors. The Company’s board of directors will review the share repurchase program periodically, and may modify, suspend or terminate the share repurchase program at any time. The Company plans to fund repurchases from its existing cash balance.
About GigaCloud Technology Inc
GigaCloud Technology Inc is a pioneer of global end-to-end B2B ecommerce technology solutions for large parcel merchandise. The Company’s B2B ecommerce platform, the “GigaCloud Marketplace,” integrates everything from discovery, payments and logistics tools into one easy-to-use platform. The Company’s global marketplace seamlessly connects manufacturers, primarily in Asia, with resellers, primarily in the U.S., Asia and Europe, to execute cross-border transactions with confidence, speed and efficiency. GigaCloud offers a comprehensive solution that transports products from the manufacturer’s warehouse to the end customer’s doorstep, all at one fixed price. The Company first launched its marketplace in January 2019 by focusing on the global furniture market and has since expanded into additional categories, including home appliances and fitness equipment. For more information, please visit the Company’s website: www.gigacloudtech.com.
Forward-Looking Statements
This press release may contain “forward-looking statements.” Forward-looking statements reflect our current view about future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “could,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “is/are likely to,” “propose,” “potential,” “continue” or similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC.
For investor and media inquiries, please contact:
GigaCloud Technology Inc
Investor Relations
Email: ir@gigacloudtech.com
PondelWilkinson, Inc.
Laurie Berman (Investors) – lberman@pondel.com
George Medici (Media) – gmedici@pondel.com
FAQ
How much did GigaCloud Technology (GCT) increase its share buyback program by?
When does GigaCloud's (GCT) share repurchase program expire?
How will GigaCloud (GCT) fund its share repurchase program?
What methods can GigaCloud (GCT) use to execute its share buyback program?
What factors will determine GigaCloud's (GCT) share repurchase timing and volume?
